Analyst: If Bitcoin Falls Below $91,000 Short-Term Holder Cost Basis, Bull Market Could Face Test

BlockBeats News, January 27th, CoinDesk analyst James Van Straten wrote that Bitcoin briefly dropped below $98,000 today, experiencing a nearly 10% pullback from its all-time high. Investors are starting to question whether the bull market will continue.

Since Trump won the U.S. presidential election, Bitcoin has risen from $66,000 to a new high of $109,000. During this upward trend, Bitcoin has experienced two pullbacks of over 15% and several drops of over 10%. Therefore, the 10% drop in Bitcoin's price this time is roughly in line with previous pullback magnitudes.

In a bull market, the Short-Term Holder Cost Basis is a reliable support indicator, representing Bitcoin's on-chain moving average cost over the past 155 days. Currently, this level is around $91,000, which means that if Bitcoin falls below this level, the bull market may face a test.